OPEC Fund Quarterly - 2024 Q3

SPOTL IGHT

Private infrastructure and industry

Photo: Epidote/Shutterstock

Green finance

SG: The economic viability of a project is essential to ensure that, for instance, loans can

be repaid. But based on our mandate, creating lasting impact in our target countries is key. OeEB’s mandate compels us to do business in a profit- oriented, but not profit-maximizing manner. OFQ : Everybody is talking about cooperation and joining forces. But isn’t competition healthy in development

too? And perhaps there is also a case for specialization and being complementary? SG: Cooperation is essential for

OeEB in brief

The organization was founded in 2008 as the development bank of the Republic of Austria. With a public mandate the bank works to achieve better living conditions in developing countries. Funding model OeEB sources its funds from the capital market mainly via OeKB AG Loans OeEB provides loans at near- market conditions for project finance, corporate finance, public- private partnerships, debt funds, financial intermediary business (MSMEs, microfinance). Loans are collateralized via guarantees from the Austrian Ministry of Finance. Investments and profit OeEB executes investments in private equity funds on behalf of

the Austrian Ministry of Finance. Its profit is used for technical assistance, for investment in private equity funds (e.g. climate impact funds) and for reserves in line with regulatory requirements.

exchanging know-how, reaching scale, sharing risk, mobilizing funds, saving cost and increasing efficiency. And, yes, competition in private markets is healthy and market players stay ambitious, for instance, in view of the quality of project implementation, costs, efficiencies etc. Joining forces is key to meeting the huge challenges the world is facing today. Each DFI has its specialization with areas of expertise and focus. This specialization creates both room for cooperation but also competition. OFQ : In this context, what are the future plans for cooperation between OeEB and the OPEC Fund? SG: OeEB and the OPEC Fund have been working together since our establishment in 2008 and we have co- financed several projects. We value the long-standing, constructive and open partnership.

OeEB Portfolio 2023:

Committed portfolio: €1.727 billion in 198 projects Loans: €1.589 billion

Equity participations: €138 million

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